🧩 Budgets And Financial Management In Higher Essay Example *️⃣ EssayHub

Question:

Discuss about the Budgets and financial management in higher.

Answer:

Preparing budget for Ned Kelly’s Newsagents for the period 1st January, 2014 until 30th June, 2014:

Particulars	Jan	Feb	Mar	Apr	May	Jun	Total
Sales	24,675	26,250	28,875	27,300	29,610	30,765	167,475
Cost of sales
Fairfax News	3,344	3,553	3,658	3,344	3,762	3,971	21,632
Newscorp	3,502	3,708	3,811	3,605	3,708	3,811	22,145
Stationary w/Sale	2,400	2,200	2,000	2,100	2,200	2,450	13,350
Cadbury	764	784	833	813	853	902	4,949
Expenses
Depreciation	400	400	400	400	400	400	2,400
Rent	1,935	1,935	1,935	1,935	1,935	1,935	11,610
Light & Power	715	715	715	715	715	715	4,290
Petrol	120	120	120	120	120	120	720
Phone	340	340	340	340	340	340	2,040
Salaries	7,175	7,175	7,175	7,175	7,175	7,175	43,050

Depicting what could be conducted to reduce rent cost:

The decline in rent can only be conducted by the company, where extension of the lease agreement could be conducted. This would eventually allow the company to negotiate and reduce rent, while declining the expenses (Bailey, 2018).

Reflecting the budget with reduced rent:

Particulars	Jan	Feb	Mar	Apr	May	Jun	Total
Sales	24,675	26,250	28,875	27,300	29,610	30,765	167,475
Cost of sales
Fairfax News	3,344	3,553	3,658	3,344	3,762	3,971	21,632
Newscorp	3,502	3,708	3,811	3,605	3,708	3,811	22,145
Stationary w/Sale	2,400	2,200	2,000	2,100	2,200	2,450	13,350
Cadbury	764	784	833	813	853	902	4,949
Expenses
Depreciation	400	400	400	400	400	400	2,400
Rent	1,890	1,890	1,890	1,890	1,890	1,890	11,340
Light & Power	715	715	715	715	715	715	4,290
Petrol	120	120	120	120	120	120	720
Phone	340	340	340	340	340	340	2,040
Salaries	7,175	7,175	7,175	7,175	7,175	7,175	43,050

Responding to the question regarding small amount of petrol budget:

The small portion of petrol budget is conducted due to the low usage and need of fuel within the production function. In addition, maximum of the production needs is fulfilled with the lightening and power, which is relatively accommodated in the budget. This is the main reason behind the increment in value of electricity and constant value of petrol in budget (Barr & McClellan, 2018).

Depicting the reason for the deviance:

The main reason behind the deviance for cost is the rising raw material price and other variable cost needed to complete the production function.

Depicting the reason behind measures to address the deviance:

Contacting other suppliers might help in getting competitive prices from the market, which in turn could help in reducing the overall cost of Cadbury.

Reference and Bibliography:

Bailey, D. (2018). The NHS Budget Holder's Survival Guide. CRC Press.

Barr, M. J., & McClellan, G. S. (2018). Budgets and financial management in higher education. John Wiley & Sons.

Finkler, S. A., Smith, D. L., Calabrese, T. D., & Purtell, R. M. (2016). Financial management for public, health, and not-for-profit organizations. CQ Press.

Klychova, G. S., Faskhutdinova, ?. S., & Sadrieva, E. R. (2014). Budget efficiency for cost control purposes in management accounting system. Mediterranean journal of social sciences, 5(24), 79.

Lopez-Valeiras, E., Gomez-Conde, J., & Naranjo-Gil, D. (2015). Sustainable innovation, management accounting and control systems, and international performance. Sustainability, 7(3), 3479-3492.

Stevenson, W. J., & Sum, C. C. (2015). Operations management. New York: McGraw-Hill Education.